Safe and Sound

TWIN RIVERS

MASSENA, NY-based TWIN RIVERS is an NCUA-insured credit union founded in 1970. As of December 31, 2017, the credit union had assets of $28.6 million.

With 8 full-time employees, the credit union holds loans and leases worth $14.6 million. Its 2,821 members currently have $24.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, TWIN RIVERS exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three important criteria Bankrate used to score U.S. credit unions on safety and soundness.

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and as protection for members during times of economic trouble for the credit union. It follows then that an institution's level of capital is a crucial measurement of its financial fortitude. When looking at safety and soundness, more capital is better.

On our test to measure the adequacy of a credit union's capital, TWIN RIVERS scored 16 out of a possible 30 points, above the national average of 15.65.

TWIN RIVERS had a capitalization ratio of 16.00 percent in our test, equal to the average for all credit unions, a sign that it's right in line with its peers.

Asset Quality Score

This test is intended to try to understand how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by problem assets, such as unpaid mortgages.

A credit union with large numbers of these types of assets could eventually be required to use capital to cover losses, decreasing its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, resulting in depressed earnings and potentially more risk of a future failure.

TWIN RIVERS scored 40 out of a possible 40 points on Bankrate's test of asset quality, above the national average of 38.09.

Troubled assets made up 0.00 percent of TWIN RIVERS's total assets in our test, below the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning money affects its safety and soundness. A credit union can retain its earnings, boosting its capital buffer, or use them to address problematic loans, likely making the credit union better prepared to withstand financial trouble. Losses, on the other hand, reduce a credit union's ability to do those things.

TWIN RIVERS received above-average marks on Bankrate's test of earnings, achieving a score of 14 out of a possible 30.

The credit union had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, an indication that it's running ahead of its peers in this area.

Bankrate.com's Safe & Sound Ratings provide a star rating system to evaluate the current financial status of financial institutions. The information gathered about banks, credit unions and thrifts is updated as set forth in the Terms of Use of Safe & Sound Ratings and Reports. The Safe & Sound Ratings information is grouped by categories of banks, thrifts and credit unions.

Scoring methodology

Bankrate.com evaluates the financial condition of institutions and assigns a one- to five-star rating for each with five stars representing the highest rating. Institutions with satisfactory performance will generally receive a rating of three or more stars. The majority of institutions fall into the three- to four-star range. An institution with an "NR" rating may be too new to rate or may have limited the publicly available information in their regulatory filings. The "NR" is not an indication of financial strength or weakness. The Safe & Sound rating is believed to be reliable, but the information is not guaranteed. In addition, events since the information was collected may have altered the institution's financial condition.

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